Tag Archives: Secured multi-option note facility

DCC on latest financial results

Benefits being massage therapist [ehowcdn.com] 1Don’t take it lying down, not yet

Dunedin City Council – Media Release
Financial Rating Outlook Remains Stable

This item was published on 04 Dec 2014

The Dunedin City Council has maintained its financial rating. In a Research Update released today, Standard and Poor’s (S & P) has affirmed the AA long-term and A-1+ short-term issuer credit ratings.
DCC Group Chief Financial Officer Grant McKenzie says it is pleasing to have the rating affirmed. “This reflects the ongoing work by elected members and staff to limit operational spending and reduce debt levels.”
In its 2014 update, S & P states the ratings reflect its view of New Zealand’s extremely predictable and supportive institutional framework, plus Dunedin’s strong financial management and very strong budgetary performance. “The stable outlook reflects our expectations that Dunedin will continue to manage its financial position in line with our forecasts.”

█ S & P is expected to release its full report in about a week.

Contact Grant McKenzie, Group Chief Financial Officer on 03 474 3849.
DCC Link

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LARGE DROP IN EXPENDITURE DUE TO DELAYED PROJECTS

### dunedintv.co.nz December 4, 2014 – 5:43pm
DCC coming in under budget in latest financial results
As the year draws to a close, the city council’s latest financial results are being analysed. Overall things are looking good for the council, with many expenses coming in under budget. But the favourable accounts have highlighted a problem with one particular service.
Video

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3.11.14 DCC: What happened to $20 million cash on hand? #LGOIMA
[DCC refuses to answer, processing . . . ]

23.8.14 DCC public finance forum 12.8.14 (ten slides)
5.7.14 DCC’s debt level — who do you believe?
17.12.13 DCC, Dunedin City Treasury and 3 big banks [Interest Rate Swaps]

Posted by Elizabeth Kerr

*Image: ehowcdn.com – Benefits being massage therapist

12 Comments

Filed under Business, DCC, DCHL, DCTL, Delta, Democracy, DVL, DVML, Economics, Enterprise Dunedin, Hot air, Media, Name, New Zealand, People, Politics, Project management, Property, Site, Sport, Stadiums, What stadium

DCTL: New treasury manager

Dunedin City Council – Media release
DCC Appoints Treasury Manager

This item was published on 10 Sep 2014

Richard Davey has been appointed to the new position of Dunedin City Council Treasury Manager. Mr Davey, who is originally from Dunedin, has had more than 21 years of banking experience in New Zealand and Australia. His experience centres on dealing with corporate treasuries and solving their risk management and funding issues.

As Treasury Manager, Mr Davey will oversee Dunedin City Treasury Ltd – a DCC-owned company provides funding and financial services to other companies in the Dunedin City Holdings Ltd group. Mr Davey will report to Group Chief Financial Officer Grant McKenzie.

Mr McKenzie says, “We are delighted to announce Mr Davey’s appointment. His extensive skills and experience mean he will be a welcome addition to the DCC’s financial team.”

Mr Davey says, “I am very pleased to be part of the DCC’s financial team, especially given the diverse treasury operations and exposures the group has. It’s also pleasing to be able to live in Dunedin and progress my career further with the Council.”

Mr Davey was most recently Director Corporate and Institutional Markets with the National Australia Bank in Melbourne. He has a Bachelor of Commerce and a Postgraduate Diploma in Commerce from the University of Otago.

The new Treasury Manager role was created following the retirement of Dunedin City Treasury Ltd Chief Executive John Knight, who left last month. Mr Davey starts in his new role on Monday, 15 September.

Contact Group Chief Financial Officer on 03 477 4000.
DCC Link

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### dunedintv.co.nz September 11, 2014 – 5:56pm
DCC in a better financial position
The Dunedin City Council is in a better financial position than it had forecast for the financial year just finished. An interim result for the council during the last twelve months was presented to councillors this week. And while there are things to be celebrated, it’s not all good news on the council’s books.
Video

Report – FIN – 08/09/2014 (PDF, 2.3 MB)
Interim Financial Result – 12 Months to 31 June 2014

Report – FIN – 08/09/2014 (PDF, 668.6 KB)
Financial Result – 1 Month to 31 July 2014

Report – FIN – 08/09/2014 (PDF, 391.2 KB)
Waipori Fund Quarterly Report to June 2014

Related Posts and Comments:
23.8.14 DCC public finance forum 12.8.14 (ten slides)
14.10.13 DCC: New chief financial officer

Posted by Elizabeth Kerr

*Image: odt.co.nz (tweaked by whatifdunedin) – Richard Davey

9 Comments

Filed under Business, DCC, DCHL, DCTL, Economics, Name, New Zealand, People, Politics, Project management, What stadium

DCC, Dunedin City Treasury and 3 big banks [Interest Rate Swaps]

WHICH THREE BANKS, DCC ??????

Comments received.

Rob Hamlin
Submitted on 2013/12/17 at 3:02 pm

As some of you may recall I have been very interested in DCTL and its large gains and losses on interest rate swaps. The following article http://nz.finance.yahoo.com/news/comcom-issue-proceedings-against-asb-194400510.html describes today’s announcement by the Commerce Commission to investigate ANZ, ASB and Westpac for mis-selling interest rate swaps to farmers – causing massive losses to these borrowers.

My interest has been further piqued by the arrangement between DCTL and three ‘independent’ banks called a ‘secured multi-option note facility’ within which these swaps are sold to DCTL by said ‘independent’ banks. The ‘secured’ as I have mentioned previously involves an ‘on call’ capital commitment by DCC to DCTL that has been deliberately put in place to circumvent Section 62 of the Local Government Act, which specifically prohibits council guarantees to trading companies. At $850 million of capital (which the DCC does not have), this amounts to some $17,000 for every ratepayer in this city – and you are liable for it.

As I have mentioned before, the very large annual fluctuations in gains and losses reported by the DCC due to interest and currency derivative exposure indicates that the DCC, via its $850 million guarantee to DCTL, is very deep indeed into this particular festering pile of poo.

I have lodged an LGOIMA request with the DCC for the identity of the three banks who are in the ‘secured variable rate note facility’ swap fest with DCTL. However, my unofficial sources indicate that the membership may be between 67% and 100% in common with the three banks mentioned in the ‘Stuff” report on large-scale interest rate swap mis-selling – Time will tell. But might be an idea to find the hammer and your piggy bank.

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Russell Garbutt
Submitted on 2013/12/17 at 4:13 pm

Rob, I simply cannot understand the role of the OAG in all of this. The OAG provides auditing services to the Dunedin City Council and is supposedly the watchdog that ensures things are all tickety-boo in City Hall. But as we have already seen in the Kaipara case that the OAG now says that it is terrible that all of this borrowing took place, but that THEY ARE NOT ACCOUNTABLE. Surely to goodness that they have seen the actions of the CFO of the DCC to subvent the point and purpose of Section 62 of the LGA. Equally puzzling is how they have not been warning of the ramifications of these infernal legalised Ponzi schemes as they have been described elsewhere.

I distinctly remember the sacked Athol Stephens explaining to me in his office that many of the financial dealings of the DCC were to avoid tax liabilities. Athol was both a Director of a Council Board and an employee of the Council as I recall at the time.

There is enough smell round this issue to warrant a lot of interest by the OAG and the mainstream media, but sadly it is just too plain in the case of the OAG that they really aren’t interested in pursuing anything that would show that they themselves have been slack and incompetent, nor are they interested in pursuing anything that involves them in any serious work.

In the case of the media, it’s all just too hard. TV simply isn’t capable and is more interested in turning news into entertainment, and the financial reporters in the papers can’t seem to get their heads round anything substantial.

A case of the fox inside the henhouse and another one on the outside, looking out for the farmer.

Posted by Elizabeth Kerr

5 Comments

Filed under Business, DCC, DCTL, Economics, Name, New Zealand, People, Politics, Project management, What stadium